Why did memecoins rise to the top today?
The recovery of cryptocurrency prices has seen the largest memecoins by market capitalization, with Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE) recording double-digit gains over the past week.
Cats in Dogs World (MEW), a Solana-based memecoin, has rallied heavily, gaining more than 47.5% in the past seven days and 9.3% in the past 24 hours. It has increased 112% to its value in the last 30 days. Mog Coin (MOG) resulted in a weekly gain of 39.6%, and Brett (BRETT), at the same time, climbed 25% and placed in third place.
Performance of top meme tokens by market capitalization. Source: CoinMarketCap
The rally in memecoins continued on October 18, with DOGE, SHIB and PEPE increasing 10.2%, 4% and 2.8% in the last 24 hours, while Dogwifhat (WIF) increased 63%.
Let's take a look at the reasons behind the rise of Memcoin today.
Is the “memecoin supercycle” here?
Bitcoin (BTC)'s recent rally above $68,000 has led many analysts to believe that “Uptober” will finally pave the way for the memecoin supercycle.
Related: Why Is Dogecoin Price Rising Today?
The memecoin supercycle theory, fronted by memecoin analyst Murad Mahmudov, states that a confluence of factors will create market conditions that can see meme-centric cryptocurrencies show parabolic growth.
Source: Murad Mahmudov
Mahmudov explains that memecoins continue to gain traction among investors as they rely more on community, emotion and the prospect of wealth than the benefits of other altcoins with more complex technical explanations and mechanics.
One of the factors that could trigger the memecoin supercycle is the continued growth of the Bitcoin price. A recent report by BDC Consulting shows that the memecoin market is “very sensitive” to movements in the BTC price correction of 0.87.
Total memecoin market value versus Bitcoin market value. Source: BDC Consulting
Such a strong correction indicates that as the price of Bitcoin continues to rise, the prices of other cryptocurrencies will not only follow, but may even surpass BTC in the short term.
Related: Memecoins Drive Tron Network Revenue to New Highs Over Q3: Messari
Expanding the market value of memecoin
Meme Token's market capitalization has risen 48.6% over the past four weeks and 4% over the past 24 hours to $57.4 billion, reflecting investor confidence in the sector.
Daily trading volume increased 140% from $3.8 billion on September 18 to a monthly high of $9.1 billion on October 16 before settling at $7.4 billion. The increase in trading volume among memecoins shows the strength of the demand-side push in the sector in the past month.
Market capitalization and volume of memecoins. Source: CoinMarketCap
Confirming this, data from Dune shows that the weekly flow of memecoins to memecoins on exchanges including Ethereum, Solana and Tron increased by 161.7% to $289.2 million per week compared to $110.5 million in the first week of September. Ends October 6th.
The cumulative trading volume of all memecoins has crossed the $52 million mark to land at $52.26 billion.
Memecoins total transaction volumes. Source: Dunn
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
